This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Gold pausing after yesterday’s gains
Gold managed to rally through trendline and horizontal resistance, following on from the wider 76.4% retracement, paving the way for a possible return to the $1366 highs before long.
For now, the question is whether we will retrace a decent amount of the $1337-$1351 rally. There is a good chance that we will instead see the price respect near-term trendline support, with a break through $1351 highlighting an end to this current pullback. Ultimately, as long as the price remains above the $1337 level, a bullish view is in play.